Development Indicators

1.Dependency ratio: measure the percentage of a population that is either too old or too young to work.

2.Development indicator: are statistics or a collection of statistics that show a country's level of development

3.Fast World: Areas of the world, usually the economic core, that experience greater levels of connection due to high-speed telecommunications and transportation technologies.

4.Fertility rate: average number of children a woman will have in a lifetime

5.First World: Industrialized

Service based economies

High quality of life

Europe, North America, Japan

6.Formal economy: economic activities that appear in official government statistics (GDP, GNP, etc.)

7.Fourth World: 3rd world countries that have experienced an economic crisis

Sierra Leon, Liberia, Somalia, Haiti

8.GDP (Gross Domestic Product): total value of goods and services produced WITHIN a country, regardless of whether the company is based in the country

9.GDP per capita: Gross domestic product divided by the number of people in the population.

10.Gender Inequality Index: A United Nations index, introduced in 2010, which measures a country's loss of achievement due to gender inequality, based on reproductive health, employment, and general empowerment.

11.Gini index: A statistical formula that measures the amount of inequality in a society; its scale ranges from 0 to 100, where 0 corresponds to perfect equality and 100 to perfect inequality

12.GNI (Gross national income): total value of what is produced in a country in addition to the income received from investments outside of the country and minus payments to other countries around the world

13.GNI per capita: Gross national income divided by the number of people in the population.

14.GNP (Gross national product): Total value of goods and services produced by a country, regardless if the economic activity is another country

15.income distribution: how the nation's total income is distributed among its population

16.Infant Mortality Rate: The total number of deaths in a year among infants under one year old for every 1,000 live births in a society.

17.informal: LDCs have more this economy

18.Informal economy: economic activities that DO NOT appear in statistics

19.LDC: Less Developed Countries

20.Literacy Rate: percentage of people who can read and write.

21.MDC: More Developed Country

22.NIC: Newly Industrialized Country

23.North South Divide: Refers to the large economic divide between many Northern and Southern states of the world, as north has MDCs but the south has LDCs

24.PPP (purchasing power parity): A statistical tool that estimates the buying power of income across different countries by using prices in the United States as a benchmark

25.Second World: Communist/planned/command economy nations

26.Sectoral Structure: refer to what percentage of a population is employed in primary, secondary, or tertiary economic activities. The fewer people employed in primary activities and the more employed in tertiary activities, the more developed a country is likely to be.

27.Slow World: The developing world that does not experience the benefits of high-speed telecommunications and transportation technology.

28.Third World: Mainly agriculture and raw materials

Low quality of life

Low development

Development Theories

1.Achieve Universal Primary Education: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling

2.Backwash: The negative impact to the peripheral region sometimes caused by increased flows of labor and capital into a nearby high-growth region

3.Combat HIV/AIDS, Malaria and other diseases: Have halted by 2015 and begun to reverse the spread of HIV/AIDS

Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who need it

Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

4.Core Periphery Model: A model of the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core region.

5.Dependency Theory: Argues that the poor / periphery countries remain this way due to colonialism, in which terms of trade were unequal, labor remained unskilled and low-paid, and profit was extracted from colonies (Circular and cumulative causation.)

Development of core countries is dependent on the underdevelopment of periphery countries

Imports tend to be high-value goods from the core

Criticisms - sweeping treatment of all peripheral territory

6.Drive to maturity: Stage 4 of Rostow model, caused by investment rate in manufacturing exceed 10% of national income, development of modern social, economic, and political institution; development of wider industrial and commercial base

7.Ensure Environmental Sustainability: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources

Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss

Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation

Achieve, by 2020, a significant improvement in the lives of at least 100 million slum dwellers

8.Eradicate Extreme Poverty and Hunger: Halve, between 1990 and 2015, the proportion of people whose income is less than $1.25 a day

Achieve full and productive employment and decent work for all, including women and young people

Halve, between 1990 and 2015, the proportion of people who suffer from hunger

9.Global Partnership for Development: Develop further an open, rule-based, predictable, non-discriminatory trading and financial system

Address the special needs of least developed countries

Address the special needs of landlocked developing countries and small island developing States

Deal comprehensively with the debt problems of developing countries

In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries

In cooperation with the private sector, make available benefits of new technologies, especially information and communications

10.High mass consumption: Rostow's Stages of Development: Stage 5, caused by exploitation of comparative advantage in international trade

11.import substitution: The production of goods and services internally by the periphery country that were once supplied by the core

12.Improve Maternal Health: Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio

Achieve, by 2015, universal access to reproductive health

13.Interlocking Factors: Capital formation, population, natural resources, and technological innovation

14.intervention: liberal school of economics is based off Adam Smith's 1776's "Wealth of Nations" that advocated for government ... in the economy

15.Modernization Theory: Holds that LDCs can develop economically if they follow a Western path.

Assumes that all countries can/will develop along the same path.

16.Neocolonialism: Also called economic imperialism, this is the domination of newly independent countries by foreign business interests that causes colonial-style colonies to continue, such a monoculture.

17.Neoliberal Counterrevolution: The 1980s school of development emphasizing free-market approaches and participation in global trade. championed by Margaret Thatcher and Ronald Reagan

18.Neoliberalism: 1. The rule of the market

2. Cutting public expenditures for social services

3. Deregulation

4. Privatization

5. Individual responsibility for well-being within society

19.Pre Take-off: Stage 2 of Rostow Model, caused by external influences, interests, or markets; commercial exploitation of agriculture and extractive industry

20.Promote Gender Equality and Empower Women: Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education no later than 2015

21.Reduce Child Mortality: Reduce by two thirds, between 1990 and 2015, the under-five mortality rate

22.Rostow: developed the Modernization Model - a liberal model that postulates that economic modernization occurs in five basic stages

23.Spread Effect: (syn: trickle-down effect) the diffusion outward of the benefits of economic growth and prosperity from the power center or core area to poorer districts and people

24.Structuralist: Regional inequalities are a result of unequal trade between core and periphery, this school of thought

25.Sustainable Development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

26.Take-off: Stage 3 of Rostow Model, caused by installation of special infrastructure and emergence of social/political elite; development of manufacturing sector

27.Traditional: Stage 1 of Rostow Model, limited tech

28.Transition economy: An economy that is changing its type from a command to a market.

29.World Systems Theory: Wallerstein's theory of the core, semi-periphery, periphery, and external areas. The core benefited the most from the development of a capitalist world economy. The semi-periphery was the buffer between the core and periphery. The periphery are states that lack strong central governments or are controlled by other states. External areas are states that maintained their own economic system and for the most part, remained outside of the capitalist world economy

HDI and PQLI

1.HDI (Human Development Index): Uses life expectancy, knowledge, and decent standard of living

2.PQLI (Physical Quality of Life Index): this is a number that's calculated using life expectancy, literacy rate and infant mortality rate

Industrial Revolution

1.Agricultural Revolution: lead to the growth of the industrial revolution as people moved in search of jobs.

2.Black Country: area of the West Midlands in England, north and west of Birmingham. During the Industrial Revolution, it became one of the most industrialized parts of Britain with coal mines, coking, iron foundries and steel mills producing a high level of air pollution.

3.Britain: Where did the Industrial Revolution originate?

4.coal: diffusion of the Revolution followed the location of this

5.coke: Cheaper iron was produced after 1709 when British smelters began to use ____ as fuel

6.colonialism: The control or governing influence of a nation over a dependent country, territory, or people.

7.food supply: a larger this mean more people can fed

8.foreign markets: US was producing more that the consumption rate in agricultural and manufactured goods so the US looked into this

9.imperialism: Is the policy of extending the rule or authority of an empire or nation over foreign countries, or of acquiring and holding colonies and dependencies.

10.Industrial Revolution: Social and economic change that began in England in the 1760s when the industrial geography of England changed significantly and later diffused to other parts of western Europe. In this period of rapid socioeconomic change, machines replaced human labor and new sources of inanimate energy were tapped. Coal was the leading energy source fueling this in England's textile-focused industrial explosion.

11.iron ore: In 1709 it was discovered that coal could be turned into Coke. Coke could then be used in the smelting process to produce iron it was later perfected. Smelting of iron became widespread in the 2nd half of the 18th century. Coke burns much hotter which allows for the smelting of metals. the result produced this

12.j-curve: curve showing J-shaped or exponential growth, the industrial revolution increased population

13.jobs: In the cities, there were more people in the city that there were...

14.mercantilism: This is the idea of having a favorable balance of trade. With mercantilism in terms of colonialism is that the colony is going to provide the raw materials and a market for manufactured goods for the colonizer.

15.periphery: increased need to exploit this

16.raw materials: increased demand of this

17.steam engine: invention that increased demand in coal

18.textile industry: What industry experienced the Industrial Revolution first?

19.urbanization: more people start to move to cities to work for factories

20.water: used to help power machines, US industrialization occurred along the fall line as this was needed to power the factories

Outsourcing, Offshoring, and Tourism

1.cheapest: Global manufacturing will move to the .... labor source

2.commodification: Something that had previously not been regarded as something to be bought or sold and turning it into something to be traded in a market economy

3.cottage industry: a business or manufacturing activity carried on in a person's home

4.Demonstration Effect: Local cultures adopt foreign cultural aspects that learned from tourists

Largest effects on smaller, indigenous cultures adopting culture from Western tourists

5.irritant industry: Economic activity that hurts as much as it helps such as tourism

6.Offshoring: To relocate service or production to a foreign country

7.outsourcing: to subcontract work to another

company

Can be subcontracted with in or outside of country

8.primary: Those parts of the economy involved in making natural resources available for use or further processing; included are mining, agriculture, forestry, fishing and hunting, and grazing.

9.quaternary: Economic activities that deal with information and knowledge processing

10.quinary: A sometimes separately recognized subsection of tertiary activity management functions involving highest-level decision making in all types of large organizations. Also deemed the most advanced form of the quaternary subsector.

11.secondary: economic activities that process transform fabricate or assemble the raw materials derived from primary activities or that reassemble refinish or package manufactured goods

12.tertiary: those parts of the economy that fulfill the exchange function, that provide market availability of commodities, and the bring together consumers and providers of services (eg wholesale and retail trade, associated transportational and governmental services)

13.tertiary: some countries with significant tourist rates often skip industrialization and have service-sector jobs or this jobs

14.Tourism: the business of organizing travel for pleasure.

Deindustrialization

1.Cyclical Change: change within types are not directional, they shift back and forth within a limited range

2.Deindustrialization: process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment

3.FDI (Foreign Direct Investment): The purchase or construction of factories and other fixed assets by transnational corporations, primarily from core to core

4.Growth Pole: a dynamic and highly integrated set of industries organized around a propulsive leading sector or industry. It is capable of rapid growth and of generating growth through spillover and multiplier effects in the rest of the

economy

5.High Tech: Industries shifted to complex technology such as computers and portable/complex technology

6.International: Trade blocs/trade agreements are formed between countries.

7.Local: .... economic development is aimed at improving a specific area.

8.Mechanization: replacement of human labor or services with technology or machines

9.Medical Centers and Universities: Are also considered growth poles as ancillary industries agglomerate around them.

10.National: A country might create subsidies or protective tariffs to protect local products. Some countries may focus on import substitution as well.

11.NIC (Newly Industrializing Countries): Countries that have experienced economic growth so that they appear to be somewhere in between MDC and LDC status. Have now manufacturing jobs now.

12.Regional: At the state or .... level the government will work to improve economic development in an area. This can be through tax breaks or other incentives.

13.Research Triangle: Located in Durham, N.C. It was originally named for it's affiliation with Duke University, University of North Carolina, and North Carolina State University. Created in 1959 on 7,000 acres it now includes over 170 companies, 39,000 full-time employees, and 10,000 contract workers. Today is surrounded by a variety of other businesses and corporate parks which have pharmaceuticals,

microelectronics, biotechnology, telecommunications, and textiles.

14.Rust Belt: A region in the northeastern United States that was once characterized by industry. Now it is known as this because of the heavy deindustrialization of the

area.

15.Service: tertiary

16.Silicon Valley: A nickname for the Southern part of San Francisco Bay Area in the northern California, originally referring to the concentration of silicon chip innovators and manufacturers, but eventually referring to the concentration of all types of high-tech businesses

17.Structural Change: A shift in the relative share of national output and employment that is attributed to each business sector; i.e. primary, secondary and tertiary sectors

18.Sun Belt: U.S. region, mostly comprised of southeastern and southwestern states, which has grown most dramatically since World War II.

Global Industrial Regions and Global Economic Interdependence

1.

4 Tigers

Hong Kong, Taiwan, South Korea, Singapore

Rapid industrialization in 60s-70s

Cheaper labor / light industry

Government assistance

Commitment to education and training

Protect local industry

More recently

Manufacturing of electronic/high tech goods

2.

Circular and Cumulative Causation

Initial small advantages/disadvantages accumulate over time resulting in large advantages/disadvantages

3.

Complementary and Comparative Advantage

the ability to produce a good or offer services at lower cost, relative to another country

Allows countries to "specialize"

4.

First mover advantage

The advantage gained by being a hearth or first adopter

Industrialization First Movers

England

Western Europe

5.

Global Financial Crisis

With economic globalization, a major economic recession in a core region will have a negative effect globally

examples

1920s Great Depression

1980s (S&L, falling oil prices)

1997 Asian Financial Crisis

Early 2000s dot.com bubble

2008 USA housing bubble

6.

Hinterland

An area from which goods can be produced, delivered to a port, and then exported

7.

imbalance

There is an ... in consumption patterns worldwide:

Core: highest consumers of resources/energy & highest producer of waste

Periphery: lowest consumers of resources/energy & lowest producer of waste

Semi-Periphery: in between the other two

8.

Primary industrial regions

First areas to develop industry

Location closely tied to location of raw materials

9.

Secondary Hearths

Eastern North America

Western Russia

Ukraine

East Asia (Japan and NE District of China)

10.

Secondary Industrial Regions

Develop in the mid-late 20th century

mainly semi-periphery

south of Brandt Line

Sustainable Development

1.climate change: Loss of wildlife, melting glaciers, stronger storms, and temperature rise is the impact of this

2.debt: Developing nations have a higher loan premium than developed nation this causes this in LDCs

3.depletion: The two most important resources, energy and fresh water, are shrinking despite dramatic increases in demand this problem is called natural resource _____________.

4.ecotourism: A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way.

5.mass consumption: buying and using products and services on a large scale

6.Pollution: human health, environmental health, acid rain/precipitation are all effects of what?

7.Sustainable development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

The Contemporary Economic Landscape

1.break of bulk point: A location where transfer is possible from one mode of transportation to another.

2.Commodity Chain: a network of labor and production processes beginning with the extraction or production of raw materials and ending with the delivery of a finished commodity.

3.Comparative Advantage: Areas specialize in goods for which they are the most efficient producer.

4.disaggregation of labor: the separation of production components

5.Economies of Scale: The larger the scale of production the larger the cost advantage.

6.Entrepot center: a port where merchandise can be imported and re-exported without paying import duties

7.Fordist Production: Large scale assembly-line production that requires many repetitive, low-skill tasks in order to produce large quantities of the exact same commodity

8.Global Division of Labor: AKA: new international division of labor

Production of goods is done in the periphery to take advantage of cheap labor. Research and development is done in the core.

Production can be moved to take advantage of infrastructure, skilled labor, and accessible markets.

9.Global Supply Chain: consists of the continuous buying and selling of goods and services; covers all the steps it to get a good/service from the supplier to the consumer

10.Intermodal connection: Places where two or more modes of transportation meet in order to ease the flow of goods and reduce the cost of transportation.

11.Just-in-time production: Process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line

12.Lean Production: producing goods and services with the minimum of waste resources while maintaining high quality

13.Node: Connection point in a network, where goods and ideas flow in, out, and through the network.

14.Pacific Rim: Region including Japan, South Korea, Singapore, Hong Kong, Taiwan; typified by rapid growth rates, expanding exports, and industrialization; either Chinese or strongly influenced by Confucian values; considerable reliance on government planning and direction, limitations on dissent and instability.

15.Post-Fordist Production: Replaced fordist manufacturing

Flexible manufacturing, smaller production runs, greater variety of goods aimed at smaller, niche markets

16.Post-industrial: Service activities/industries are more dominant than secondary industries.

a term that refers to after industrialization

17.Spatial Fix: The movement of production from one site to another based on the place-based cost advantages of the new site.

18.Spillover Effect: This is the effect of one area that has developed industry into another area that is connected/linked to it.

19.Time-Space Convergence: the idea that with improvements in transportation and communication we have seen an increase in speed as to which things happen

20.Transnational Corporation: A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.

21.Vertical Integration: Ownership by the same firm of a number of companies that exist along a variety of points on the commodity chain.

22.World City: Global City

These are the command and control points for the global economy.

Trade and World Division of Labor

1.Basic industry: Industries that sell their products or services primarily to consumers outside the settlement. secondary

2.capital and technology: For poorer countries, free trade can promote the introduction of this into their economies.

3.cheapest: Unskilled manufacturing jobs follow the ... labor cost

4.Comparative advantage: The idea that everyone benefits when countries produce and sell freely what they do most efficiently. In other words, everyone should specialize in what they do best and governments should intervene as little as possible in the process. In economics, it refers to how a group/country can produce a good more efficiently than another type of good.

5.Competition: The idea that this fosters lower prices, efficiency in production, and innovation.

6.Core jobs: tertiary sector and above advanced secondary jobs

7.Cultural Imperialism: Similarly, countries in Latin America and elsewhere (France is commonly cited) worry about this (Hollywood; rock and roll bands) and the loss of historic industries .

8.Democratization: Some think free trade even promotes democracy because it promotes discipline and transparency.

9. Domestic Concerns: Most mainstream economists want to dismiss these threats because they say free trade also creates jobs and growth. But labor unions and domestic industries use this argument to push protectionism. Clearly, free trade agreements can cause dislocations, and attendant ripple effects, in an economy, even if they create a bigger economic pie

10.Economic Growth: Because free trade promotes this , pressing social problems, such as unemployment or environmental deterioration can be alleviated.

11.economic restructuring: The decline of manufacturing jobs in the United States, the transformation of the economy by technological change and the process of globalization loss of manufacturing jobs in core states

12.EU (European Union): An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members.

13.Export Processing Zone: Areas in periphery that make products for exports with limited tariffs

14.Free Trade: An economic theory or policy of the absence of restrictions or tariffs on goods imported into a country. There is no "protection" in the form of tariffs against foreign competition.

15.Free Trade Zone: An area of a country in which trade restrictions do not apply

16.Functionalism: The argument that cooperation in one area (such as trade) promotes cooperation in other areas. In theory, the drug problem, immigration problems, etc. are more forthrightly addressed.

17.Globalization: A process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.

18.Harmonization: This downward: Free trade could force countries to lower their environmental, labor, or other standards in order to compete. Also, such standards could be declared unfair trade practices by regional or international bodies.

19.Import Substitution: manufacturing goods locally to replace imports

20.Infant Industries: Poorer countries have argued that they needed to protect these so they can get them off the ground in the first place. Most economists see this

as a valid argument, but argue that it then becomes hard to take the protections off.

21.Interdependence: The idea that free trade leads to interconnections that make conflict too costly. In other words, dependency undercuts the likelihood of war. (Europe is a commonly cited example).

22.International Trade: Exchanging goods and services between countries

23.less: Women are paid ... in export processing zones

24.Maquiladora: Factories built by US companies in Mexico near the US border but moving south more to take advantage of much lower labor costs in Mexico.

25.Multiplier effect: 1 basic sector creates 2-3 non-basic jobs

26.NAFTA (North American Free Trade Agreement): A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.

27.Neocolonialism: using economic power to influence other countries

28.Nice Free Traders: .... free traders can finish last: In the real world there are governments which control exports and imports, heavily subsidize their producers, or erect NTBs which limit trade. In this world, nice free traders can finish last. The US allowed discriminatory practices from others after WWII, but fights them now that it no longer represents the majority of the world economy.

29.Non-basic industry: industries that sell their products primarily to consumers in the community tertiary

30.Outsourcing: A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

31.Over-dependency: Specialization through comparative advantage could make an economy (especially a smaller economy) too dependent on a few resources or products. If demand falls in those areas, economic catastrophe could ensue.

32.Periphery jobs: lower secondary jobs

33.Protectionism: This is expensive: Basically, tariff and non-tariff barriers (NTBs) result in higher prices for consumers. Barrier costs are passed on to consumers, or consumers are forced to buy more expensive domestically produced goods. Regional free trade agreements help offset the danger of this elsewhere and secure markets for exporters. In other words, they give leverage against other large economic entities, like the European Union.

34.Security: is endangered: Protectionists sometimes argue that a country should not become so dependent that it cannot defend itself. For example, the US should not let its

shipbuilding industry die simply because ships can be built cheaper in other places. Steel is another example.

35.Semi-periphery: mixture of both periphery jobs and core jobs

36.Special Economic Zone: specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

37.Trade: is a powerful policy tool: When dealing with other countries trade leverage should not be given up because of a belief in economic rationalism. Similarly, we should not give up our sovereignty over trade matters to regional or international bodies. They shouldn't be able to claim our laws are unfair barriers to trade.